Real Estate Scope 1, 2, 3 Emissions

Scope 1, 2, and 3 emissions are three categories of greenhouse gas (GHG) emissions commonly used to measure a company's carbon footprint. In the context of real estate, these emissions are generated by various activities related to the operation, maintenance, and construction of buildings.

1. Scope 1 Emissions: Scope 1 emissions are direct GHG emissions generated by sources that are owned or controlled by a company. In the case of real estate, scope 1 emissions can be generated by on-site combustion of fossil fuels, such as natural gas for heating or diesel for backup generators.

2. Scope 2 Emissions: Scope 2 emissions are indirect GHG emissions generated by the production of purchased electricity, heat, or steam consumed by a company. In the case of real estate, scope 2 emissions can be generated by the consumption of grid electricity, district heating or cooling, or on-site generated electricity from non-renewable sources.

3. Scope 3 Emissions: Scope 3 emissions are indirect GHG emissions generated by sources not owned or controlled by a company but related to its activities. In the case of real estate, scope 3 emissions can be generated by upstream emissions associated with the production and transportation of materials and equipment used in building construction and operation, downstream emissions associated with waste disposal, tenant transportation, and commuting, as well as emissions from leased assets.

To effectively address and reduce the environmental impact of real estate operations, companies need to measure and report their GHG emissions across all three scopes, set ambitious emission reduction targets, and implement measures to reduce their carbon footprint.